Mr. Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd
"IRCTC Q1FY21 revenue de-grew by 71.4% to Rs. 131.3 cr as its business operation was disrupted due to COVID-19. Operating profit has also turned negative from Rs.103.4 cr in Q1FY20 to Rs. (43.9) cr for the quarter. Operating profit suffered heavily due to fixed expenses of employees and other expenses. PAT has also turned negative to Rs. (24.6) cr as compared to Rs. 72.3cr in corresponding period. Other income increased for the Company to Rs. 25.14 cr for the quarter from Rs.17.34 cr due to higher investment as money was not employed in the business. We believe it will take time for the business to come back to normal level. As per media reports, if the Company announces OFS, there will be short term pressure in the stock price due to increase in the free float in the market. Still, long term fundamentals are intact for the Company."